The scrips of domestic cement companies have hardened
in the past two weeks with most cement scrips touching
normal monsoon, increasing domestic demand due to a renewed
thrust on infrastructure development, expectations of
a price hike and a strong financial performance of cement
companies are the major reasons for the recovery in the
sector, say analysts tracking the sector.
the old economy counters have spearheaded the three-month
rally. But the cement sector is the only under-performed
sector during the past few months. However, there have
been signs in the past two weeks that the sector is finally
looking up after languishing at the bottom of the pile
for a long time. A potential consolidation following the
Grasim-L&T deal has also helped the sentiment,"
says an analyst with Darashaw Borking and Investments.
scrip of ACC has climbed by 20 per cent to close at a
52-week high after posting 122-per cent growth in its
first quarter bottomline. Birla Corp has surged by over
30 per cent, buoyed by a nearly seven-fold rise in its
quarter one results. Moreover, the company has increased
has been another big gainer after its result announcement.
The company's net profit increased by 23 per cent to Rs
130 crore, beating market expectations. As a result, the
scrip has shot up by 18 per cent to Rs 565.